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Are Investors Undervaluing Global Ship Lease (GSL) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Global Ship Lease (GSL). GSL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.54, which compares to its industry's average of 6.58. Over the past year, GSL's Forward P/E has been as high as 9.76 and as low as 2.43, with a median of 5.27.

Finally, investors should note that GSL has a P/CF ratio of 5.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GSL's current P/CF looks attractive when compared to its industry's average P/CF of 6.49. GSL's P/CF has been as high as 6.36 and as low as 0.83, with a median of 2.21, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Ship Lease is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GSL feels like a great value stock at the moment.


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